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  • FIRST POST
    • Bamble531
    • By Bamble531 12th May 18, 8:01 AM
    • 4Posts
    • 0Thanks
    Bamble531
    Any reason to pay back debt no longer on credit file?
    • #1
    • 12th May 18, 8:01 AM
    Any reason to pay back debt no longer on credit file? 12th May 18 at 8:01 AM
    Hi guys, just looking for some advice that I'm struggling to find the answer to online...

    I have a default on my file with an outstanding balance of 2380. I have been paying off just 5 a month for a long time while I pay off more urgent debts (This one is frozen and I am not paying any interest). I have finished paying off all other debts (woohoo!) and this is the last one but I am wondering whether I should bother to pay it off or just keep paying the 5 a month for the rest of my life or if I ever had any more cash flow... the default will drop off my file in October 2020 and money is going to be tight for the foreseeable future.

    SO my question is; if I carry on paying this token amount, is there anything they can do to harm my credit file after the default drops off in 2020? Is there any reason at all to actually make an effort to pay the balance?

    Thanks in advance for any advice!
Page 1
    • singleandskint
    • By singleandskint 12th May 18, 8:21 AM
    • 12 Posts
    • 9 Thanks
    singleandskint
    • #2
    • 12th May 18, 8:21 AM
    • #2
    • 12th May 18, 8:21 AM
    If you stop paying they may apply for a CCJ which will be added to your file for a further 6 years. They are able to do this anytime for 6 years following your last payment as your account with them is not statute barred
    • Bamble531
    • By Bamble531 12th May 18, 8:23 AM
    • 4 Posts
    • 0 Thanks
    Bamble531
    • #3
    • 12th May 18, 8:23 AM
    • #3
    • 12th May 18, 8:23 AM
    Yeah I understand that, I'm not talking about stopping paying I'm asking if there is any reason to pay more than the 5 a month
    • StokieBecks
    • By StokieBecks 12th May 18, 10:52 AM
    • 4,549 Posts
    • 27,348 Thanks
    StokieBecks
    • #4
    • 12th May 18, 10:52 AM
    • #4
    • 12th May 18, 10:52 AM
    In an ideal world the money you were paying towards other debts should now be allocated to this one but no one can decide that for you. If they ever ask you for income and expenditure you mustn't show you have more than the 5 you are paying them if you choose to continue with 5 payments.

    A settled deb will look slightly better on a credit file than an unsettled one but if you can only afford the 5 then stick with that.

    Have you done yourself a new budget to take the previous set repayments into account? Don't undo all your hard work by thinking that money is now spare cash and spending it
    • Bamble531
    • By Bamble531 12th May 18, 11:03 AM
    • 4 Posts
    • 0 Thanks
    Bamble531
    • #5
    • 12th May 18, 11:03 AM
    • #5
    • 12th May 18, 11:03 AM
    Sorry maybe I'm not being clear enough in what I'm asking.

    AFTER the default comes off my file in 2020, would only paying 5 a month have any potential negative repercussions for me?
    • sourcrates
    • By sourcrates 12th May 18, 12:32 PM
    • 14,597 Posts
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    sourcrates
    • #6
    • 12th May 18, 12:32 PM
    • #6
    • 12th May 18, 12:32 PM
    Sorry maybe I'm not being clear enough in what I'm asking.

    AFTER the default comes off my file in 2020, would only paying 5 a month have any potential negative repercussions for me?
    Originally posted by Bamble531
    No, none whatsoever, except if the creditor then chose to take matters further, such as court action, you pay whatever you feel you can afford, but paying such a small amount the debt will take many years to be repaid, and as explained before, as your paying it, it will never become statute barred.

    Try saving up and making an offer to settle at some point, at least you would be rid of the debt.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

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    • Bamble531
    • By Bamble531 12th May 18, 12:41 PM
    • 4 Posts
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    Bamble531
    • #7
    • 12th May 18, 12:41 PM
    • #7
    • 12th May 18, 12:41 PM
    Thank you!

    Yes I'm planning to pay it off, I just know that it will be impossible for me to do that before the default drops off my file and want to make sure I don't end up with another default or a CCJ.
    My plan is to continue paying the 5 a month, making the occasional lump payment when I have the funds and then paying it all off later in life.
    • StokieBecks
    • By StokieBecks 12th May 18, 12:52 PM
    • 4,549 Posts
    • 27,348 Thanks
    StokieBecks
    • #8
    • 12th May 18, 12:52 PM
    • #8
    • 12th May 18, 12:52 PM
    You can't get another default for it. Unfortunately the CCJ is always a risk but you should be ok as they are getting regular payments from you.
    • macman
    • By macman 13th May 18, 11:51 PM
    • 42,022 Posts
    • 17,467 Thanks
    macman
    • #9
    • 13th May 18, 11:51 PM
    • #9
    • 13th May 18, 11:51 PM
    You can't get another default for it. Unfortunately the CCJ is always a risk but you should be ok as they are getting regular payments from you.
    Originally posted by StokieBecks
    Indeed they are, but that's assuming that they are happy to wait another 40 years to recover the o/s amount at 5 pm..
    No free lunch, and no free laptop
    • Gary_Dexter
    • By Gary_Dexter 14th May 18, 9:45 AM
    • 1,511 Posts
    • 861 Thanks
    Gary_Dexter
    Once it's off your file you could make a final settlement request.

    However, be aware they can still apply for a CCJ and they can also ask you for a statement of earnings, detailing you incoming and outgoings, and insist that a higher amount is paid each month,
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